Commercial property tenants across the Midlands are paying their rents in record time in spite of the recession.
Colliers International’s Birmingham office collected 99.71 per cent of its £4m quarterly (October-December) rent roll within 14 days of billing.
According to Martyn Edwards, a director and head of the investment property management team in Birmingham, tenants across all property sectors – even troubled retailers – are paying up.
He said: “The recession can be a convenient excuse for even those in a strong position to default or delay paying their rent. However, many tenants do not want to get into arrears, spiral into debt and spoil their credit rating. Through dialogue we can distinguish between those in genuine financial difficulty, and those who are taking advantage.”
Mr Edwards manages a team of five responsible for an annual rent roll of £16m, across more than 200 properties in and around the Midlands.
He believes the root of Colliers International’s success in securing prompt payments lies in the on-going dialogue he and his team have with occupiers.
He said: “Too many landlords rely on automated systems to manage their rent books. In my experience, nothing beats a phone call or a visit to the tenant. Getting credit control right is fundamental for landlords in the current climate, that means knowing your tenants and their business.”
